Campbell upgrades guidance

Mining services group
Campbell Brothers
has increased its guidance for expected underlying net profit after tax for the half year ending September 30 to about $100 million from $95 million.

A net profit after tax of $100 million would represent a 51 per cent increase on the previous corresponding period.

In a statement to the Australian Securities Exchange on Tuesday, the company said trading results for the first five months of the current half-year were stronger than expected.

“Most laboratories across all divisions within the ALS laboratory services business are experiencing record sample volumes, and this has led to both revenue and operating margins being slightly ahead of expectations," the company said.

“North America, Africa and South American operations have been particularly strong."

This company said strong operating conditions are expected through until December, at which time the company expects to see a seasonal slowdown.

The company has also benefited from a slightly weaker than expected Australian dollar in the latter half of the six month period.